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McDonald's US same-restaurant sales beat estimates

Sales at the firm's US restaurants open at least 13 months rose 3.9% in the second quarter


McDonald's US same-restaurant sales beat estimates

McDonald's Corp on Tuesday reported a higher-than-expected rise in quarterly at established restaurants, helped by promotions on beverages as well as the launch of signature crafted sandwiches.

at the company's U.S. restaurants open at least 13 months rose 3.9 percent in the second quarter, beating the 3.2 percent increase analysts on average had expected, according to research firm Consensus Metrix.

Global same-restaurant climbed 6.6 percent, the biggest increase in more than 5 years, helped by higher traffic across all segments, beating the 4 percent growth estimated by analysts.

Two years into a turnaround under Chief Executive Steve Easterbrook, the fast-food giant is trying to reverse traffic declines at its U.S. restaurants - its biggest profit generator - through a slew of measures, including making cooked-to-order Quarter Pounders with fresh beef and higher-end signature crafted sandwiches.

McDonald's has been selling soft drinks of all sizes for $1 since April and also launched a limited-time offer of McCafe beverages, which include frappes, smoothies and espresso drinks, for $2.

Net income rose to $1.40 billion, or $1.70 per share, in the quarter ended June 30, from $1.09 billion, or $1.25 per share, a year earlier.

Revenue fell 3.4 percent to $6.05 billion from $6.27 billion, but beat the average analyst estimate of $5.96 billion, according to Thomson Reuters I/B/E/S.

McDonald's shares were up 3.1 percent at $156.60 in premarket trading.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 25 2017. 19:30 IST